Rupee recovers slightly to 88.60 amid dollar weakness
The rupee rose 15 paise to 88.60 against the US dollar amid a weaker greenback. Trade uncertainties, H-1B visa fee hikes, and US tariffs continue to weigh, while Commerce Minister Piyush Goyal holds trade talks in the US.
Mumbai: The rupee recovered 15 paise from all-time low to 88.60 against the US dollar in early trade on Thursday, tracking the weakness of the American currency in the overseas market.
Forex traders said the rupee is facing renewed strain this week, as multiple factors have combined to put pressure on the currency.
Factors like H-1B visa fee hike, Trump tariffs and persistent foreign fund outflows further dented investors’ sentiments.
At the interbank foreign exchange market, the rupee opened at 88.65 against the US dollar, then touched 88.60, registering a gain of 15 paise from its previous close.
On Wednesday, the rupee ended 2 paise down at its lowest-ever closing level of 88.75 against the US dollar.
Forex traders said investors remained concerned over global trade uncertainties and impact of US visa fee hike on India’s IT services exports.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13 per cent lower at 97.75.
Brent crude, the global oil benchmark, was trading 0.36 per cent lower at USD 69.06 per barrel in futures trade.
On the domestic equity market front, Sensex declined 141.32 points to 81,574.31 in opening trade, while the Nifty fell 22.4 points to 25,034.50.
Foreign Institutional Investors offloaded equities worth Rs 2,425.75 crore on Wednesday, according to exchange data.
“USD/INR is testing key levels, with resistance at 89.00–89.20 and support at 88.40. The up move appears driven more by tariffs and visa fee hikes than by broad dollar strength. A close below 88.20 would mark the first signal of a potential trend reversal, while progress on trade talks or a softer dollar index could support a rupee rebound,” CR Forex Advisors MD – Amit Pabari said.
Meanwhile, Commerce and Industry Minister Piyush Goyal is in the US for trade talks. He is accompanied by senior officials of the ministry, including special secretary and India’s chief negotiator Rajesh Agrawal.
Goyal has held discussions with his US counterpart.
This visit comes in the backdrop of recently concluded day-long discussions in New Delhi between US Chief Negotiator Brendan Lynch and Agrawal on the proposed bilateral trade agreement.
